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Home My WebLink About20111541.tiff Jon D.Wilcox AMA Land Manager Marathon Land Oil Company 5555 San Felipe Houston,TX 77056 P.O.3487 Houston,TX 77253-3487 t i Telephone: 713-296-3337 e-mail: jdwilcox@marathonoil.com April28, 2011 Board of Weld County Commissioners 915 10th Street Greeley, Colorado 80632 Re: Assignment dated April 28, 2011 Oil and Gas Lease, dated November 9, 2009 Weld County, Colorado (j q , Slat TgAJ, e(DLL{)) Ladies and Gentlemen: Pursuant to the Oil and Gas Lease entered into with Lonetree Energy and Associates LLC, recorded at Reception 3661249, we are hereby giving notice that Marathon Oil Company has sold,transferred and assigned 30%of its right,title and interest to properties within the above listed county to Marubeni Denver Julesburg LLC, a Texas limited liability company with offices at 2800 Post Oak Boulevard, Suite 6000, Houston, TX 77056. The effective date of this sale is April 28, 2011. Attached is a copy of the fully executed and recorded Assignment and Bill of Sale. Please acknowledge receipt of this Notice by signing in the space below, and returning in the envelope provided. You can contact me at the address listed above if you have any questions regarding this matter. Sincerely, k. (t)P—a-6,1 Jon D. Wilcox Land Manager Attachment Acceptedhis 22nd day of June , 2011 B ' 2011-1541 arbara Kirkmeye , Chair 6- -ao1( C&=me tia-, 671 Laoa3S LE-61-16 ac2_// IIHIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII e' 3765554 04/29/2011 10:28A Weld County, CO , hh 1 of 66 R 336.00 D 0.00 Steve Moreno Clerk& Recorder After recorded return to: Marubeni Denver Julesburg LLC 2800 Post Oak Blvd., Suite 6000 Houston, TX 77056 Attn:Mr.Keiichiro Mano STATE OF COLORADO COUNTY OF WELD ASSIGNMENT AND BILL OF SALE This Assignment and Bill of Sale (this "Assignment"), effective as of 7:00 a.m. (Central Time) on the 28th day of April, 2011 (the "Effective Time"), is by and between Marathon Oil Company, an Ohio corporation, whose address is 5555 San Felipe, Houston, Texas 77056 ("Assignor"), and Marubeni Denver Julesburg LLC, a Texas limited liability company, whose address is 2800 Post Oak Blvd., Suite 6000,Houston,Texas 77056 ("Assignee"). For Ten Dollars and other good and valuable consideration(the receipt and sufficiency of which are hereby acknowledged), Assignor does hereby grant, bargain, sell, convey, assign, transfer, set over and deliver to Assignee, subject to the limitations,reservations, agreements and exceptions set forth below, an undivided thirty percent (30%) of Assignor's right, title and interest in and to the following (collectively,the"Assets"): (a) the oil, gas and mineral leases, subleases, other leaseholds, earned interests, mineral servitudes, royalties, production payments, net profits interests, reversionary interests and other interests in oil, gas and/or minerals in place, or rights to earn the same described in Exhibit A (collectively, the "Leases") , insofar and only insofar as the Leases cover and relate to the lands described on Exhibit A(the"Land"); (b) to the extent assignable (with consent, if applicable), the rights (including beneficial interests) in, to and under all Contracts relating to the Leases, Wells or Land, including, but not limited to, all leases,Permits,rights-of-way, easements, subsurface easements, surface use agreements, road use agreements, confidentiality agreements, unit agreements, farmout agreements, farmin agreements, joint venture agreements, participation agreements, exploration agreements, purchase agreements, area of mutual interest agreements, operating agreements, hydrocarbon sales, purchase, gathering, storage, transportation, treating, marketing, exchange, processing and fractionating agreements, licenses, options, orders and decisions of Governmental Authorities establishing units, and any similar Contracts or documents (collectively, the "Applicable Contracts"), but not including the Kirkwood Agreement, it being understood by the Parties that certain of the Applicable Contracts may be held only in the name of the operator of the particular Leases involved for the benefit of the Parties; (c) all of the working interest rights in all oil, gas and condensate wells (whether producing, not producing, operating, shut-in or abandoned), water source, water Page 1 of 6 nil lEni Al 3765554 04/29/2011 10.28A Weld County, CO 2 0l 66 R 336.00 D 0.00 Steve Moreno Clerk&Recorder injection and other injection or disposal wells and systems, located on (i)the Land, or(ii)the Fee Lands or other lands held for use in connection with the Leases,pursuant to a surface contract or lease, in all cases whether producing, operating, shut-in or temporarily abandoned,together with all personal property and equipment in or associated with such wells(collectively,the"Wells"); (d) all rights, obligations and interests in any unit or pooled area in which any Lease or portion thereof is included,to the extent that these rights, obligations and interests arise from and are associated with any of the Leases or Wells, including, but not limited to, all rights and obligations derived from any unitization, pooling, operating, communitization or other agreement or from any declaration or order of any Governmental Authority (the "Existing Units"); (e) all crude oil, natural gas, casinghead gas, drip gasoline, natural gasoline, petroleum, natural gas liquids, condensate, products, liquids, other hydrocarbons, and other minerals or materials of every kind and description (collectively, the "Hydrocarbons"), that are produced from or attributable to the Leases, the Existing Units or the Wells and that are produced after the Effective Time; (f) all equipment, machinery, fixtures and all facilities, including, but not limited to, flow lines, pipelines, gathering systems, well pads, tank batteries, improvements, SCADA equipment and transmitters,telecommunications equipment, fixtures,radio towers, field radio telemetry and associated frequencies and licenses, pressure transmitters and central processing equipment, tools, and other personal property located on the Land, the Fee Lands, surface leases or Permits and easements comprising any portion of the Property, or primarily used or held for use in developing or operating the Leases,Existing Units or Wells or producing, treating, storing, compressing, processing or transporting Hydrocarbons on and from the Leases, Existing Units or Wells; (g) surface interests in fee lands primarily used or held for use in the ownership or operation of the Leases,Existing Units or Wells (the"Fee Lands"); (h) other tangibles, miscellaneous interests or other assets in Assignor's possession, or which Assignor has the right to obtain, relating to the Leases, Existing Units or Wells, including copies of all Leases, deeds, division of interest statements, Applicable Contracts, lease files, land files, maps, accounting records, well files, production and operation records, technical files, cores, geophysical and seismic data, physical samples or materials from wells or tests, division order files, abstracts, title opinions, regulatory files, health, safety and environmental files and contract files, insofar as they are related to the Leases or the Applicable Contracts, but excluding Assignor's corporate minute books and corporate financial, tax and legal files that relate to Assignor's business generally and all rights and interests of Assignor under any insurance policies and programs covering the Property; and (i) all claims, rights and causes of action, including warranty claims, against third parties, whether asserted or unasserted, known or unknown, but only to the extent attributable to the Assets after the Effective Date and where necessary to give effect to such rights, claims and causes of action, Assignor grants to Assignee the right to be subrogated to such rights, claims and causes of action. Page 2 of 6 111111111111111111111111 III 11111 111111 III 111111111 V I I I 3765554 04129/2011 10:2SA Weld County, err 3 of 66 R 336.00 D 0.00 Steve Moreno Clerk& Recorder RESERVING AND EXCEPTING TO ASSIGNOR an overriding royalty interest in each tract covered by each Lease equal to the positive difference, if any, between 25 percent and the Existing Burdens on such tract as of the Effective Time, in all of the Hydrocarbons produced and saved under the terms of the Lease from the Lands subject to the Lease or lands pooled therewith, and any extensions and renewals thereof obtained within six (6) months after the termination or expiration thereof (the "Retained Overriding Royalty"); provided, however, in no event shall the Retained Overriding Royalty reduce the Net Revenue Interest held by Assignee in any Lease to less than 30 percent multiplied by 75 percent. The Retained Overriding Royalty is subject to the following terms and conditions: (a) "Existing Burdens"means all existing and valid non-cost bearing burdens in effect as of the Effective Time affecting the Leases, including the landowner's or lessor's royalty, overriding royalties, net profits interests, production payments, and any other charges or existing non-cost bearing burdens of a similar nature applicable thereto, but excluding the Retained Overriding Royalty. (b) Proportionate Reduction Clause. The Retained Overriding Royalty shall be proportionately reduced, on a lease-by-lease basis,to the extent(i) any Lease covers less than the entire undivided oil and gas mineral fee estate in and under the land covered by such Lease, and (ii) the interest assigned is less than the entire oil and gas leasehold estate created by such Lease. The Retained Overriding Royalty shall further be reduced if the landowner's royalty burdening any Lease is greater than such royalty as of the Closing Date at any time, including upon any extension or renewal of such Lease. The Retained Overriding Royalty burdening any extension or renewal of an expiring Lease shall be reduced such that at all times the Retained Overriding Royalty equals the positive difference, if any, between 25 percent and the aggregate of all Existing Burdens burdening the applicable Lease at any given time. If at any time the aggregate of all Existing Burdens burdening the applicable Lease increases or exceeds 25 percent, Assignor shall take such actions requested by Assignee to reduce or terminate (as applicable) any Retained Overriding Royalty, effective as of the date of such extension or renewal. (c) Post-Production Costs. The Retained Overriding Royalty shall be free and clear of all costs and expenses of producing,gathering, storing, separating, treating, dehydrating, compressing, processing, transporting, marketing and/or otherwise making oil, gas, casinghead gas, and other products ready for sale or use, but shall be subject to and Assignor shall bear its proportionate share of ad valorem taxes, production taxes, severance taxes, windfall profit taxes, excise taxes and other taxes imposed with respect to the Retained Overriding Royalty. (d) Pooling. Assignee may voluntarily pool, communitize, or unitize the Retained Overriding Royalty with the Leases and other leases and lands without the consent of Assignor. (e) No Obligations. No obligation, either express or implied, shall arise by reason of the Retained Overriding Royalty that would obligate Assignee to develop or produce the Lands or to keep and maintain the Leases in force and effect. Page 3 of 6 11111 Olt 111111 III 111111111111 III 11111 !III !III 3765554 04/29/2011 10:28A Weld County, CO 4 of 66 R 336.00 D 0.00 Steve Moreno Clerk& Recorder TO HAVE AND TO HOLD the Assets unto Assignee, its successors and assigns, forever, subject to the following terms and conditions. Assignor agrees to warrant and forever defend title to the Assets unto Assignee against the claims and demands of all persons claiming, or to claim the same, or any part thereof, by, through or under Assignor, but not otherwise, and Assignor hereby assigns to Assignee the covenants and warranties that were previously made to Assignor and Assignor's affiliates and representatives with respect to any of the Assets. Assignor warrants to Assignee that it has not granted, created or reserved any overriding royalty, net profits interest, carried interest, production payment, reversionary interest, or similar burden that would result in the respective Net Revenue Interests held by Assignee in the oil and gas produced, saved and marketed from or attributable to the Leases to be less than 30 percent multiplied by 75 percent. This Assignment is delivered in connection with that certain Acquisition and Participation Agreement dated as of April 4, 2011, by and between Assignor and Assignee (the "Agreement"). The Agreement contains certain representations, warranties and agreements between the parties, some of which survive the delivery of this Assignment, as provided for therein and shall not be merged into this Assignment or be otherwise negated by the execution or delivery of this Assignment. This Assignment shall not be construed to amend the Agreement or vary the rights or obligations of either Assignor or Assignee from those set forth in the Agreement. In the event of any conflict between this Assignment and the Agreement, the terms of the Agreement shall control. The capitalized terms used in this Assignment and not otherwise defined shall have the meanings set forth in the Agreement. Assignee assumes and agrees to perform any and all liabilities and obligations to be performed by Assignor with regard to the Assets, arising after the Effective Time, including, but not limited to, payments which may be required to extend, renew or replace a particular Lease, and Assignee hereby adopts, ratifies and agrees to be bound by and observe all of the terms, covenants and conditions of the Lease and other Assets. Assignee hereby assumes and agrees to bear its proportionate part of all landowners' royalty and overriding royalty of record burdening the Leases as of the Effective Time. Assignor agrees to execute, acknowledge and deliver to Assignee, from time to time, such other and additional instruments, notices, division orders, transfer orders and other documents, and to do all such other and further acts and things as may be necessary to more fully and effectively grant, convey,transfer and assign to Assignee the Assets. Separate governmental form assignments of the Assets may be executed on officially approved forms by Assignor to Assignee, in sufficient counterparts to satisfy applicable statutory and regulatory requirements. Those assignments shall be deemed to contain all of the terms hereof. The interests conveyed by such separate assignments are the same, and not in addition to,the interests conveyed herein. This Assignment binds and inures to the benefit of Assignor and Assignee and their respective successors and assigns. This Assignment may be executed in several counterparts and all of such counterparts together shall constitute one and the same instrument. Page 4 of 6 III° 11111111111111111 III 111111 111111III111111111 IIII 3765554 04/29/2011 10:28A Weld County, CO 5 of 66 R 336.00 D 0.00 Steve Moreno Clerk& Recorder IN WITNESS WHEREOF, this Assignment has been executed by the parties hereto effective as of the Effective Time. ASSIGNOR: MARATHON OIL COMPANY • By: L /vc Jon D. ilcox,Attorney-in-Fact ASSIGNEE: MARUBENI DENVER JULESBURG LLC By: MARUBENI UNCONVENTIONAL RESOURCES CORPORATION,its Managing Member By: Keiichiro Mano, Chief Operating Officer Page 5 of 6 • 1111111 111111111111 III 11111111111111 11111 FHB 3765554 04129/2011 10:28A Weld County, CO 6 of 66 R 336.00 D 0.00 Steve Moreno Clerk& Recorder Acknowledgements STATE OF TEXAS ) ) ss. COUNTY OF HARRIS ) The foregoing instrument was acknowledged before me this 28th day of April, 2011,by Jon D. Wilcox,Attorney-in-Fact of Marathon Oil Company, an Ohio corporation,on behalf of said corporation. WITNESS my hand and official seal. ,I „ tAG e t , ote1)3 AVA AIMS ngTIexa �'`� r"� ' • r , Note(r�Jpa�ffib8d f Taxes �� !, r�� a ..i.� e Notary Public My Commission Exxpirea ,p,11 October 13, 2014 e i r ing at: 4J My commission expires: STATE OF TEXAS ) ) ss. COUNTY OF HARRIS ) The foregoing instrument was acknowledged before me this 28th day of April,2011,by Keiichiro Mano, Chief Operating Officer of Marubeni Unconventional Resources Corporation,a Texas corporation and managing member of Marubeni Denver Julesburg LLC, a Texas limited liability company, on behalf of said limited liability company. WITNESS my hand and official seal. (Notary Seal) Notary Public Residing at: ri Q4k, ,—x a$�'11a: CAROL A SCHLEGEL '" .La Note ry Public,State of Texas My commission . 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